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As the cost of owning a home has continued to rise, properties are sitting on the market longer, waiting for a willing buyer.
Almost two-thirds (64.7 percent) of homes that were for sale in June had been listed for at least 30 days without going under contract, Redfin reported on Wednesday. That figure is up from 59.6 percent the previous year, representing the largest annual increase in the last year and the highest share of any June since 2020.
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The month also marked the fourth consecutive one in which the share of homes that had been on the market for at least one month increased on an annual basis.
Record home prices and higher mortgage rates are dissuading buyers, even though inventory is more robust than in recent years. In June, the total number of homes for sale posted its largest year-over-year gain on record because many listings are sitting on the market.
“Overall, the market is fairly stagnant,” Shay Stein, a Redfin Premier agent in Las Vegas, said in Redfin’s report.
“There are more listings hitting the market, but a lot of them aren’t in good condition or they’re not in a desirable neighborhood — and sellers are pricing unrealistically high. A lot of sellers are willing to let their home sit on the market until they get the price they want, and a lot of buyers aren’t willing to pay sky-high prices when mortgage rates are still high. My advice to serious sellers is to price fairly and make cosmetic repairs before listing.”
Properties that are move-in ready, relatively affordable and in good neighborhoods — as well as luxury homes that are priced well — are still moving quickly, Stein added.
Florida and Texas are seeing the largest rise in unsold inventory, Redfin reported, largely due to greater housing construction compared to other parts of the country. New homes are being built as demand dwindles, leading to higher levels of inventory.
Dallas saw the largest increase in stale inventory, with 63 percent of listings sitting on the market for at least 30 days in June, up 52 percent year over year. Meanwhile, in Tampa, 70 percent of homes for sale had been listed for at least 30 days, up from 60 percent in June 2023. In Fort Lauderdale, the portion of homes that had been sitting on the market for at least a month was 77 percent, up from 68 percent the previous year, while in Jacksonville, that figure was 70 percent, up from 61 percent the year prior. In Orlando, 69 percent of homes for sale had been listed for one month, up from 60 percent in June 2023.
The share of stale home listings grew on an annual basis in 44 out of the 50 most populous U.S. metro areas. The share of stale listings declined on an annual basis in five metros, but only by a small portion (2 percent or less): Nassau County, New York; New York, New York; Las Vegas, Nevada; Newark, New Jersey; and Warren, Michigan.
Meanwhile, 42.6 percent of homes on the market in June had been listing for at least 60 days without going under contract, up from 38.4 percent the previous year. That increase represented the largest such annual increase in almost one year. June also marked the third month in a row in which the portion of homes sitting on the market for at least two months has increased.
